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Precigen (PGEN)
NASDAQ:PGEN
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Precigen
(NASDAQ:PGEN)
52Neutral
Positive Factors
FDA Approval Process
The FDA grants PRGN-2012 priority review, setting up a PDUFA date; this indicates a faster-than-usual review process for the drug.
Market Opportunity
PRGN-2012 could become the first and only approved therapy to treat adults with recurrent respiratory papillomatosis, positioning it as a potential standard of care.
Negative Factors
FDA Approval Risks
The FDA does not currently plan to hold an advisory committee meeting, which may suggest confidence in the submitted data.
Precigen (PGEN) vs. S&P 500 (SPY)
Market Cap
$521.31M
Dividend YieldN/A
Average Volume (3M)2.02M
Price to Earnings (P/E)―
Beta (1Y)2.12
Revenue Growth-41.38%
EPS Growth-49.25%
CountryUS
Employees202
SectorHealthcare
Sector Strength78
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.55
Shares Outstanding292,869,100
10 Day Avg. Volume1,402,610
30 Day Avg. Volume2,021,241
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)190.61
Price to Cash Flow (P/CF)-5.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.33Price Target Upside263.79% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Precigen Business Overview & Revenue Model
Company DescriptionPrecigen, Inc. is a biotechnology company, which engages in the research and development of synthetic biology technologies. It focuses on programming biological systems to alleviate disease, remediate environmental challenges, and provide sustainable food and industrial chemicals. The product pipeline includes Isobutanol, Isobutyraldehyde, Farnesene, and Isoprene. The company was founded by Thomas David Reed in 1998 and is headquartered in Germantown, MD.
How the Company Makes MoneyPrecigen generates revenue primarily through the development and commercialization of its proprietary gene and cell therapy platforms. The company collaborates with pharmaceutical and biotechnology companies, entering into strategic partnerships and licensing agreements to advance its research and development efforts. These collaborations typically involve upfront payments, milestone payments upon achieving specific development or regulatory goals, and royalties on net sales of successfully commercialized products. Additionally, Precigen may conduct contract research and development services, providing expertise and access to its technology platforms for third-party projects. The company's revenue streams are bolstered by its ability to innovate and bring cutting-edge therapies to market, as well as by securing grants and funding from government and private entities to support its research initiatives.
Precigen Financial Statement Overview
Summary
Precigen faces significant financial challenges, with declining revenues, persistent losses, and negative cash flow. While debt has been reduced, the company still struggles with profitability and cash management. Strategic initiatives are needed to address these financial instabilities and improve performance.Income Statement
Precigen has shown a declining trend in revenue over the years, with a significant drop in the latest TTM period. The gross profit margin has turned negative, indicating higher costs than revenues. The net profit margin remains deeply negative, reflecting ongoing losses. EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.35
Negative
Balance Sheet
The company has reduced its debt levels, improving the debt-to-equity ratio. However, the equity ratio has declined from previous years, indicating reduced financial stability. Return on equity is negative due to consecutive net losses, posing a risk to investors.45
Neutral
Cash Flow
Free cash flow remains negative, with a declining growth rate, indicating cash burn. The operating cash flow to net income ratio suggests operational cash outflows exceed net losses. Despite some positive investing cash flow, overall cash flow management remains a concern.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.96M | 6.22M | 26.91M | 103.87M | 103.18M | 90.72M | Gross Profit |
| -2.50M | 106.00K | 20.57M | 45.49M | 47.66M | 29.32M | EBIT |
| -129.91M | -88.92M | -74.61M | -78.78M | -85.68M | -173.40M | EBITDA |
| -136.11M | -89.23M | -66.00M | -84.07M | -70.41M | -137.46M | Net Income Common Stockholders |
| -139.56M | -95.90M | -79.78M | -96.77M | -103.77M | -207.76M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 222.84M | 62.85M | 55.95M | 115.16M | 100.12M | 75.05M | Total Assets |
| 716.18M | 151.04M | 215.98M | 359.86M | 314.59M | 455.76M | Total Debt |
| 212.26M | 7.10M | 51.42M | 194.20M | 182.28M | 247.94M | Net Debt |
| 109.49M | -481.00K | 46.56M | 151.28M | 130.49M | 182.15M | Total Liabilities |
| 337.45M | 32.55M | 89.72M | 252.51M | 247.41M | 384.05M | Stockholders Equity |
| 362.86M | 118.50M | 126.26M | 107.35M | 67.17M | 71.71M |
| Cash Flow | Free Cash Flow | ||||
| -76.74M | -68.47M | -69.97M | -63.02M | -84.55M | -173.81M | Operating Cash Flow |
| -75.70M | -66.93M | -65.05M | -55.77M | -77.02M | -135.93M | Investing Cash Flow |
| 13.29M | -3.09M | 226.42M | -74.54M | 27.78M | 86.85M | Financing Cash Flow |
| 32.17M | 29.59M | -155.29M | 121.19M | 32.70M | 8.14M |
Precigen Technical Analysis
Neutral
1.74
Price Trends
1.52
Positive
1.18
Positive
1.23
Positive
Market Momentum
0.07
Positive
51.70
Neutral
47.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PGEN, the sentiment is Neutral. The current price of 1.74 is below the 20-day moving average (MA) of 1.84, above the 50-day MA of 1.52, and above the 200-day MA of 1.23, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 51.70 is Neutral, neither overbought nor oversold. The STOCH value of 47.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PGEN.
Precigen Risk Analysis
Precigen disclosed 61 risk factors in its most recent earnings report. Precigen reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Precigen Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
52 Neutral | $521.31M | ― | -137.46% | ― | -41.38% | -49.25% | |
49 Neutral | $6.84B | 0.05 | -53.14% | 2.48% | 24.49% | -3.26% | |
46 Neutral | $3.63B | ― | -19.20% | ― | -89.95% | -123.71% | |
42 Neutral | $206.96M | ― | -156.42% | ― | -74.04% | 48.16% | |
42 Neutral | $38.57M | ― | -270.20% | ― | 144.50% | -141.91% | |
39 Underperform | $125.29M | ― | -98.10% | ― | -58.64% | -40.05% | |
39 Underperform | $962.71M | ― | -54.00% | ― | 59.55% | 3.09% |
* Healthcare Sector Average
Performance Comparison
PGEN
Precigen
1.74
0.31
21.68%
SGMO
Sangamo Biosciences
0.92
0.14
17.95%
BLUE
Bluebird Bio
3.73
-22.87
-85.98%
EDIT
Editas Medicine
1.37
-6.78
-83.19%
NTLA
Intellia Therapeutics
9.22
-18.30
-66.50%
CRSP
Crispr Therapeutics AG
41.99
-30.02
-41.69%
Precigen Earnings Call Summary
Earnings Call Date: Nov 14, 2024 | % Change Since: 97.73% | Next Earnings Date: Mar 19, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress with PRGN-2012, including promising clinical trial results, regulatory designations, and strategic commercial preparations. However, these advancements were offset by workforce reductions, pausing of other clinical trials, and financial losses, which indicate a focused but challenging path forward.Highlights
FDA Breakthrough and Orphan Drug Designations
PRGN-2012 received a breakthrough designation and an accelerated path from the FDA in June 2023, along with orphan drug designation from both the FDA and EMA.
Strong Clinical Trial Results for PRGN-2012
In Phase I and II trials, 51% of patients achieved complete response and 86% exhibited reduced surgeries, marking unprecedented results in the treatment of Recurrent Respiratory Papillomatosis.
Commercial Readiness and Strategic Partnerships
Phil Tennant joined as Chief Commercial Officer, leading efforts towards a potential 2025 launch for PRGN-2012, with preparations for global commercialization.
Successful Equity Issuance
The company raised $31.4 million through equity issuance, extending the financial runway into early 2025, and plans to explore additional financing options.
Lowlights
Workforce Reduction
A strategic decision led to a reduction of over 20% of the workforce to redirect resources towards PRGN-2012.
Pausing of Other Clinical Trials
Trials for PRGN-3005 in ovarian cancer and PRGN-3007 ROR1 CAR-T were paused as part of cost-saving measures.
Financial Losses
Net loss for Q2 was $58.8 million, including $32.8 million of non-cash impairment charges related to the ActoBio business.
Shutting Down of ActoBio
Operations for ActoBio, a Belgium-based subsidiary, were shut down, affecting its portfolio and IP.
Company Guidance
During the Q2 2024 earnings call for Precigen (PGEN) on August 14, 2024, significant guidance was provided regarding the company's strategic focus and financial outlook. The call highlighted the prioritization of PRGN-2012, a gene therapy aimed at treating Recurrent Respiratory Papillomatosis (RRP), which showed a 51% complete response rate and an 86% reduction in surgeries among patients. The therapy received breakthrough and orphan drug designations from the FDA and EMA, with plans to submit a Biologics License Application (BLA) by the end of 2024 and potential commercialization in 2025. Financially, the company announced an equity issuance netting $31.4 million, providing a runway into early 2025, alongside a workforce reduction of over 20% to streamline operations and focus on PRGN-2012.Precigen Corporate Events
Product-Related AnnouncementsPrivate Placements and Financing
Precigen Secures $79M Financing for 2025 Launch
Positive
Dec 30, 2024
Precigen has announced a private placement of $79.0 million through the sale of its 8.00% Series A Convertible Perpetual Preferred Stock and warrants to purchase common stock. The proceeds from this financing, which includes investments from Patient Capital Management and others, are expected to extend Precigen’s cash runway into 2026, supporting the anticipated commercial launch of PRGN-2012 in 2025.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.